Demand pressure and performance anxiety - Page 3
Page 3 of 59 FirstFirst 12345671353 ... LastLast
Results 21 to 30 of 588

Thread: Demand pressure and performance anxiety

  1. #1
    Educator
    Join Date
    Jun 2013
    Posts
    1,103
    Thumbs Up
    Received: 579
    Given: 189

    Demand pressure and performance anxiety

    Hi everybody!

    Today I want to talk a bit about two dangerous states of mind that traders face with: Demand pressure and Performance anxiety.

    While performance anxiety occurs after winnings streaks, demand pressure pushes trader to make trades, because he needs to make money (demand pressure is fear not to make profits, performance anxiety is fear not to keep them).

    For every trader those issues are different, but for most of them performance anxiety is more destructive.

    Why?

    If you haven't made profits yet, it's easier to cut your bad trades, because you are more critical about your ability to predict and to make "killing trades". If you had "flat" period in your PNL, or try to recover yourself from losses - odds that you will be more modest in your expectations are higher.

    And it helps to improve your performance! You start filtering bad trades and finally accept couple of good trades that move your equity curve forward. In some cases, you may feel that now you are trading "in sync" with the market, and you are inside a winning streak.

    But after that, you understand, that it's hard to keep that state of mind, and you start experiencing "performance anxiety".

    It's an emotional state and it makes you increase your risk to eliminate that discomfortable feeling, making more proftis (proving yourself that you are good trader and have nothing to worry about that much)

    Guess what happens?

    You multiply your anxiety by your increased leverage, and finally you may find yourself paralized - you are so emotionally connected with your trades, that can't cut bad ones, stop thinkng about them and go search for new ones. Also, odds that you will start do some revenge trading are also high.

    You understand that you should reduce your risk, but then you will have to face your anxiety which is uncomfortable and hard to live with.


    So, universal rule - DON"T INCREASE YOUR LEVERAGE when you feel performance anxiety.
    Embrace that feeling, try to live with it not to get rid of it. Maybe in some time you will find that you are more connected with roots of that feeling and will be prepared to reduce that anxiety.



    What about demand pressure?


    It is also emotional, and I would say - it's about expectations, we think that your goal is "to make X dollars a month". If you think this way, you would more than likely be pushed to make trades - and I would bet that those trades will be "bad ones".

    That's why it's so important to have process goals instead of performance goals.
    Don't think about money or any financial targets.

    Your goal is to be the best trader you can be, to trade in your best way, to improve every day. Other goals, especially financial, will keep you away from consistency.

    So, HAVE PROCESS GOAL INSTEAD OF PERFORMANCE GOAL

    Not allowed!
    Last edited by Value trader; 12-30-2014 at 10:18 AM.

  2. #21
    Trader
    Join Date
    Aug 2013
    Posts
    11,566
    Thumbs Up
    Received: 69
    Given: 48
    thanks for these informations and i want to say that increasing the leverage will encourage the trader to increase the risk and this will make process of trading dangerous and may lead to a big loss or margin call,and then i agree with you that the trader should put a fixed amount of money to make each month because he will not be able to do that and he should put average profits for him each month

    Not allowed!

  3. #22
    Registered user
    Join Date
    Mar 2013
    Posts
    3,925
    Thumbs Up
    Received: 215
    Given: 113
    Quote Originally Posted by sameeh View Post
    thanks for these informations and i want to say that increasing the leverage will encourage the trader to increase the risk and this will make process of trading dangerous and may lead to a big loss or margin call,and then i agree with you that the trader should put a fixed amount of money to make each month because he will not be able to do that and he should put average profits for him each month
    We should avoid trading Forex when we are mentally sad, depressed or not in cheerful mood. We should avoid trading with a high leverage unless we are prepared to lose our capital. We should risk in Forex only that much which we can afford to lose. Staking more in trading will make us filled with anxiety and worry.

    Not allowed!

  4. #23
    Trader
    Join Date
    Oct 2013
    Posts
    144
    Thumbs Up
    Received: 3
    Given: 7
    I think that forex trading is all about demand pressure and performance anxiety ..if we can handle it well, then we can be successful traders...whenever we do forex trading, then sometimes we will suffer losses and to recover those, we will have a demand pressure which will make us to repeat our mistakes and suffer more losses..so everyone wants to do well in forex trading...which will also increase our anxiety to do well...so we should handle it carefully, because it can cause us to go deep into losses and make more mistakes ..

    Not allowed!

  5. #24
    Banned
    Join Date
    Oct 2013
    Posts
    11,246
    Thumbs Up
    Received: 241
    Given: 193
    forex trading is an emotional business and if we do not control it with properly, and usually it happens to the newbies who came to forex trading and brought a big dream, and then for them who got some loses at this level will get big pressure and trigger the emotion, then to overcome all of them, trader need to spend the time for learning and practicing, to know or see their ability and with open mind will push them to understand it, who we are and how to do the best thing

    Not allowed!

  6. #25
    Trader
    Join Date
    Nov 2013
    Posts
    523
    Thumbs Up
    Received: 2
    Given: 0
    Stress which is uncontrolled an easily became frustrating given the right high pressure.High leverage should not be used when we had performance anxiety because it calculates the profit and loss multiples while trading in this market.We should always be calm and not to be worried always about the market.We should risk in as much as we can afford to loose.

    Not allowed!

  7. #26
    Trader
    Join Date
    Sep 2013
    Posts
    438
    Thumbs Up
    Received: 15
    Given: 6
    Demand presure is a huge problem not just at newbies but also in head of professional traders. I would say it that we can only limit demand presure by seting a specific strategy with specific rules. The first rule is that we must wait for entry signal that is predefined with our strategy, and if that entry signal is not occur we simply do not trade.

    Not allowed!

  8. #27
    Trader ara's Avatar
    Join Date
    Dec 2013
    Posts
    1,834
    Thumbs Up
    Received: 106
    Given: 184
    Well, this is about the target and greed, I am completely aware that the target is a motivation for traders, but are forced to always reach the target I think is bad, because the market conditions not always the same every time. So the pressure to always reach the target is often made ​​us get a huge loss, and not being in accordance with the plan rules. But so far I still have the problem of greed, not because my target should always be achieved, but the greed for no apparent reason. This is my situation was not easy for me to change it.

    Not allowed!

  9. #28
    Trader
    Join Date
    Dec 2013
    Posts
    98
    Thumbs Up
    Received: 2
    Given: 0
    I think that everything we think is easy then all these things will seem easy. but if we consider it difficult, then I think everything will be very hard. everything depends on how we think. because basically the pressures will always exist, just how we handle it.

    Not allowed!

  10. #29
    Trader
    Join Date
    Mar 2013
    Posts
    40
    Thumbs Up
    Received: 0
    Given: 0

    ..

    It also happens if you ever got MC. Build up your confident step by step and day by day. The important thing is make up your mind set with "THERE STILL HAVE ANOTHER CHANCE TO MAKE PROFIT" so find the most better opportunity to open your trade.

    Not allowed!

  11. #30
    Trader
    Join Date
    Oct 2013
    Posts
    207
    Thumbs Up
    Received: 5
    Given: 4
    That two problem has devastating effect in our trading.I am totally agree with you about performance anxiety . When somebody make some profit and feel that he is good at trading and started to make risk by increase his leverage is really dangerous thing.I think 1:100 is enough for a trader .But i still remember at the beginning i increased my leverage to 1:500. this condition is enough to destroy it. and i suggest not always try to take profit. take rest for some times.

    Not allowed!

Page 3 of 59 FirstFirst 12345671353 ... LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •